Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
What is an option? - - -
correct answer ✅An option is a unilateral right in a contract, for a
specific period of time, where the Government may elect to
purchase additional supplies or services called for by the contract,
or extend the period of performance.
The PCO should use options when (1) in the Governments best
interest, (2) there is a need for service beyond the initial period,
and (3) to ensure continuity of service.
The use of options are not normally in the Governments best
interest when (1) The foreseeable requirements involve minimum
economic quantities and delivery requirements are far enough in
the future to permit competitive acquisition, production, and
delivery (2) an indefinite quantity or requirements contract would
be more appropriate than a contract with options.
What must a PCO do before exercising an option? - - -
correct answer ✅The PCO must determine that:
1. Funds are available
2. The requirement fulfills an existing Government need
3. Exercising the option is the most advantageous method price and
other factors considered
4. The option was synopsized IAW FAR 5 (or exempted)
,Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
The PCO should have a written D&F in the file in order to use
options
The PCO should also consider if the contractor is responsible and if
their performance is satisfactory.
If the option price during a competitive source selection was not
evaluated, is the option valid? - - -
correct answer ✅No. All options need to be priced because they
were awarded on a competitive basis.
Can the PCO cite the "Changes Clause" to increase quantities on a
production contract? - - -
correct answer ✅No. The Changes Clause cannot be used to
increase quantities on a production contract.
(a) The Contracting Officer may at any time, by written order, and
without notice to the sureties, if any, make changes within the
general scope of this contract in any one or more of the following:
(1) Drawings, designs, or specifications when the supplies to be
furnished are to be specially manufactured for the Government in
accordance with the drawings, designs, or specifications.
(2) Method of shipment or packing.
,Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
(3) Place of delivery.
Is any approval required for an effort that is out of scope ? - - -
correct answer ✅Changes outside the scope of the original
contract are considered new work and constitute a cardinal change,
and in this case, one of two things should happen:
1. Compete the new work
2. Get a J&A and seek proper approval
What are the four essential elements the PCO must address when
making a Scope Determination? - - -
correct answer ✅1. Scope of the competition - could the original
offerors have reasonable anticipated such a change?
2. Contract type - Requirments should be better defined in a FFP
contract therefore require less changes.
As opposed to a RDT&E contract.
3. Period of performance - will the PoP be extended significantly so
as to constitute new work?
4. Overall cost/price change - what has been the total change in
price throughout all modifications?
, Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
What must the PCO do for any change and/or modification
estimated to be $1M or more? - - -
correct answer ✅Obtain legal review of the proposed action and
document the review in the contract file
Where can a PCO look to help determine if a change is in-scope? - -
-
correct answer ✅Various source documents to include:
SOO/SOW/PWS, synopsis, RFP, exchanges with industry, market
surveys, RFIs, etc.
What is "scope creep?" - - -
correct answer ✅Scope creep occurs when a series of in-scope
changes make the contract as a whole out-of-scope. The PCO must
remain cognizant of scope creep when changing/modifying existing
contracts.
What is a T&M contract? - - -
correct answer ✅Limitations. A time-and-materials contract may
be used only if—
(1) The contracting officer prepares a determination and findings
that no other contract type is suitable. The determination and
finding shall be—
Board Exam Questions And Answers
What is an option? - - -
correct answer ✅An option is a unilateral right in a contract, for a
specific period of time, where the Government may elect to
purchase additional supplies or services called for by the contract,
or extend the period of performance.
The PCO should use options when (1) in the Governments best
interest, (2) there is a need for service beyond the initial period,
and (3) to ensure continuity of service.
The use of options are not normally in the Governments best
interest when (1) The foreseeable requirements involve minimum
economic quantities and delivery requirements are far enough in
the future to permit competitive acquisition, production, and
delivery (2) an indefinite quantity or requirements contract would
be more appropriate than a contract with options.
What must a PCO do before exercising an option? - - -
correct answer ✅The PCO must determine that:
1. Funds are available
2. The requirement fulfills an existing Government need
3. Exercising the option is the most advantageous method price and
other factors considered
4. The option was synopsized IAW FAR 5 (or exempted)
,Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
The PCO should have a written D&F in the file in order to use
options
The PCO should also consider if the contractor is responsible and if
their performance is satisfactory.
If the option price during a competitive source selection was not
evaluated, is the option valid? - - -
correct answer ✅No. All options need to be priced because they
were awarded on a competitive basis.
Can the PCO cite the "Changes Clause" to increase quantities on a
production contract? - - -
correct answer ✅No. The Changes Clause cannot be used to
increase quantities on a production contract.
(a) The Contracting Officer may at any time, by written order, and
without notice to the sureties, if any, make changes within the
general scope of this contract in any one or more of the following:
(1) Drawings, designs, or specifications when the supplies to be
furnished are to be specially manufactured for the Government in
accordance with the drawings, designs, or specifications.
(2) Method of shipment or packing.
,Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
(3) Place of delivery.
Is any approval required for an effort that is out of scope ? - - -
correct answer ✅Changes outside the scope of the original
contract are considered new work and constitute a cardinal change,
and in this case, one of two things should happen:
1. Compete the new work
2. Get a J&A and seek proper approval
What are the four essential elements the PCO must address when
making a Scope Determination? - - -
correct answer ✅1. Scope of the competition - could the original
offerors have reasonable anticipated such a change?
2. Contract type - Requirments should be better defined in a FFP
contract therefore require less changes.
As opposed to a RDT&E contract.
3. Period of performance - will the PoP be extended significantly so
as to constitute new work?
4. Overall cost/price change - what has been the total change in
price throughout all modifications?
, Contracting Officer Unlimited Warrant
Board Exam Questions And Answers
What must the PCO do for any change and/or modification
estimated to be $1M or more? - - -
correct answer ✅Obtain legal review of the proposed action and
document the review in the contract file
Where can a PCO look to help determine if a change is in-scope? - -
-
correct answer ✅Various source documents to include:
SOO/SOW/PWS, synopsis, RFP, exchanges with industry, market
surveys, RFIs, etc.
What is "scope creep?" - - -
correct answer ✅Scope creep occurs when a series of in-scope
changes make the contract as a whole out-of-scope. The PCO must
remain cognizant of scope creep when changing/modifying existing
contracts.
What is a T&M contract? - - -
correct answer ✅Limitations. A time-and-materials contract may
be used only if—
(1) The contracting officer prepares a determination and findings
that no other contract type is suitable. The determination and
finding shall be—
